Interview with Eric S. Witt, President Global Strategy & Business Development Nexeo Solutions

INDUSTRY VIEW

-Actually, this is an interesting time for plastics companies. In Latin America, the market is growing and there are opportunities, but at the same time the industry is changing very rapidly.

Today, providers have a comprehensive view from any part of the Americas, and know about their competitors in other countries. Brazil is an example where European, U.S., Chinese and Mexican companies can be found.

A distributor primarily thinks about the customer, who demands different things, occasionally at the same time. They want more experience and practice with the technical aspects of products. Providers need to adapt their products and be closer to their customers to understand their needs.

The distance between providers and customers is starting to diminish. Customers need service worldwide, and therefore do not want to work with many vendors at the same time. Customers need something more specific: they want partners who will work without borders and in all parts of the world, so that they are closer to the customers in order to serve them.

THE FUTURE…

-They are looking for opportunities in South America and México, where the markets  are now growing faster than in the United States.

There are many options to work with different providers, but only 10% to 11% of the markets operate through a distribution channel. 

We are growing and doing three or four things at once right now: plastics, chemicals, distribution, and composite materials. We want to be a different type of company in the market in terms of distribution, with more comprehensive services for customers.

Compared to medical products, construction or food, the distribution of plastics and chemicals has a higher volume, but the biggest problem is that distributors don’t know how they can work with the equipment of providers. Some have machinery, others large equipment for sale, and still others have technology. It would be worth the effort to work together in order to grow the market, offer brands in different places, and this will require a more effective distribution channel.

We think that we can grow in Mexico, and we are looking for companies similar to Nexeo, make contact with them and find those that want to acquire business in the same way.

The U.S. and Mexico are excellent options for elevating the level of service. We don’t want to make just plastic but world class plastic, and to find opportunities to do so.

We have customers worldwide and the market is looking to expand and grow. We want to be seen as efficient and a good marketing channel that helps customers achieve their goals, with a fluid exchange of information in the sector. Nexeo is going to make things interesting, we are part of our customers’ operations and we are building a new history.

Today, Nexeo employs more than 2,000 people, and we operate in the U.S., Europe and Asia. It is an interesting time for the company, which is fairly new. It started last April when Texas Pacific Group (TPG) acquired the distribution business of Ashland, and they have now created a sustainable business. We talked to them about the competitive chemical industry, and explained that a business like this can be successful when the distribution is effective. We decided to invest in that aspect.

FORMULA FOR SUCCESS

-I think there are two factors important for success. The first is to surround yourself with people who can teach you something. It’s good to work in different places, because you gain more experience and meet people who can offer their expertise.

The second is that if you ever find yourself too comfortable or content in your job, it's time to move on. It's time to do something else because the job has become too easy and you're not working hard enough. I've changed jobs probably about three or four times in my career. This is one of the things that brought me to Nexeo. In some ways this builds on skills I had in the past, but it was unlike some of the other things that I have done.

PERSON WHO INFLUENCED ME

-I admire my father. He had business in South America, Mexico and in other countries around the world, and he taught me to speak Spanish.

Our Director General David Bradley is another. I admire his drive and the way he encourages you to do better at work, to think about how things could be different and not settle just with the way things are. It’s the idea of vision: thinking big, while making sure you can direct it and make it manageable.

I spent seven years at Bain & Company, and met many people who taught me important things through their actions.